Should You Pay Off Debt or Invest in Real Estate? (Follow This Rule) | AMA (Ask Meyer Anything)

21 snips

Jan 15, 2025

Discover strategies for buying rental properties without seeing them in person, including the importance of inspections and local partnerships. Delve into the pros and cons of investing out-of-state when your local market is pricey. Weigh the dilemma of paying off student loans versus investing in real estate, especially when interest rates come into play. Learn how to align your lifestyle goals with your real estate business to scale and achieve financial growth.

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ANECDOTE

Henry's Sight Unseen Experience

Henry Washington bought properties sight unseen in his local market.
Others inspected them.

ADVICE

Tech for Sight Unseen

If lacking a team, use apps like WeGoLook or ProxyPix.
These apps provide on-demand property viewing services.

ADVICE

Sight Unseen Purchases

Don't buy sight unseen in unfamiliar markets without a trusted team.
Utilize inspectors, contractors, agents, or property managers for due diligence.

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Can’t figure out how to buy multiple rental properties a year with your current income? Wondering whether you should get rid of your student loans before buying your next property? Maybe your market is too expensive, so is it time to go out of state instead? These are some of the most common questions we see on the BiggerPockets Forums, and today, we’re answering them so you can get to your next rental(s) faster, even if you’ve got debt and even if your home market is too expensive.

First, we’re explaining when and why we buy properties without ever seeing them in real life. Isn’t that a huge risk? Yes—if you do it the wrong way. Next, should you invest out-of-state if your home market is too expensive, and if you decide to do so, what should you know BEFORE buying a property well outside driving distance? Want to scale faster? We’re discussing purchasing multiple rental properties a year and when it’s time to grow your real estate portfolio.

Got student debt? You’re not alone! Henry had his student loans until recently and still heavily invested in real estate. But, if your interest rate crosses a certain threshold, we’d definitely recommend reconsidering real estate investing. Stay tuned; we’ll share when your debt is too much to invest.

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In This Episode We Cover:

How to buy multiple rental properties a year and when it’s time to scale

Paying off debt vs. investing and whether six-figure student loans are stopping you

Buying rentals sight unseen, the risks, and why we do it under certain circumstances

Out-of-state investing 101 and signs it’s time to leave your home market to invest elsewhere

Keeping vs. selling a negative cash-flowing rental property (and when to hold for equity)

And So Much More!

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(00:46) Buy Rentals Sight Unseen?

(06:03) Out-of-State Investing 101

(10:59) Ask Us Questions LIVE!

(12:37) Buy 2 Rentals in 1 Year?

(16:12) Invest While in Debt?

(21:46) Keep Negative Cash Flow Property?

(27:03) Post Your Question!

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